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Sims Metal Management (the “Company”) announced today that it will establish an on–market share buy–back as part of its capital management strategy.
The Board considers it appropriate to establish the buy–back program to provide the Company flexibility to repurchase shares, particularly during times of share market turmoil and share price volatility.
In announcing the buy-back program, Sims Metal Management Group CEO Daniel W. Dienst stated, “The Company remains committed to its growth strategy and will continue to execute on its organic and external growth opportunities. Effecting a repurchase of shares on the open market and perpetuating our growth objectives are not mutually exclusive propositions. We have maintained discipline with respect to our balance sheet so as to be positioned to opportunistically pursue accretive deployment of our shareholders’ precious capital. The current share price, impacted by global macroeconomic concerns, provides one such opportunity.”
Mr. Dienst continued, “In the last 12 months the Company completed a number of strategically important acquisitions including S3 Interactive Limited, Dunn Brothers, Device and ergoTrade, Metrade and Commercial Metal Recycling Services. These acquisitions were accomplished via free cash flow. As at 30 June 2011, the Company had net debt of 4 percent of total capital, providing significant balance sheet flexibility to fund growth initiatives, internal investment and in buying back shares under this capital management initiative.”
The program will allow the Company to buy back a maximum of 10% of its issued capital (20,603,871 shares) over a 12-month period on the Australian Securities Exchange. The timing and actual number of shares to be purchased will depend on market conditions and other considerations. There is no guarantee that the Company will repurchase the full 20,603,871 shares. The earliest the buy–back can commence is 24 October 2011.
Cautionary Statements Regarding Forward-Looking Information
This release may contain forward-looking statements, including statements about Sims Metal Management’s financial condition, results of operations, earnings outlook and prospects. Forward looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions.